Finding Text
Finding: 2022-001: Calculation and Timely Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Special Tests and Provisions ? Return of Title IV Funds Criteria When a recipient of Title IV funds withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Per 34 CFR 668.22(e), the percentage of Title IV assistance that has been earned by the student equals the percentage of the payment period or period of enrollment that the student completed. Per 34 CFR 668.173(b), returns of Title IV funds are required to be deposited or transferred as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Found During our testing of return of Title IV funds, we selected a sample of 36 students to recalculate the amount to be returned and to test whether the University returned those funds within the 45-day requirement. One of our selections was not submitted within the required 45-day window, and two of our selections had calculations based off an incorrect start-of-term date of January 3, 2022, instead of the correct date of January 4, 2022. Cause and Effect The University did not have an adequate control to ensure that the Title IV funds were consistently calculated correctly and returned within the required 45 days. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the returned Title IV funds are correctly calculated and that they are returned timely to the Department of Education. Views of Responsible Officials The University agrees with the condition reported. The responsible department reviewed the process and controls related to the return to Title IV requirement. The University has implemented controls to ensure that the correct start dates are used, and returns are made within the 45-day requirement.